When must a Deer Solution franchisee execute the ACH Authorization Form?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Payment Authorization: Upon the request of Franchisor and in no event not later than 30 days prior to the earlier of the Actual Business Commencement Date or the Scheduled Business Commencement Date, Franchisee shall execute Franchisor's designated ACH Authorization Form and such other authorization agreements, in the form proscribed by Franchisor and permitting Franchisor's direct withdrawal and/or electronic transfer of sums from Franchisee's designated business bank account, for the on-going payment of Royalty Fees and, all other fees and sums due from Franchisee under this Agreement. As of the Effective Date, Franchisor's current ACH Authorization that must be executed and complied with by Franchisee is attached to this Agreement as Exhibit 4. Franchisor may require Franchisee to pay the Royalty Fees, and other amounts due under this Agreement by means other than ACH and/or automatic debit whenever Franchisor deems appropriate, and Franchisee agrees to comply with Franchisor's payment instructions.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, a franchisee must execute the ACH Authorization Form no later than 30 days prior to the earlier of the Actual Business Commencement Date or the Scheduled Business Commencement Date. This form allows Deer Solution to directly withdraw or electronically transfer funds from the franchisee's designated business bank account for ongoing payments such as Royalty Fees and other amounts due under the Franchise Agreement. The current ACH Authorization form is attached as Exhibit 4 to the Franchise Agreement.
Deer Solution may request this authorization at any time. However, the franchisee must comply with this request at least 30 days before the business is scheduled to open or actually opens, whichever comes first. This ensures that Deer Solution has the necessary authorization in place to collect fees as soon as the business begins generating revenue.
Deer Solution also retains the right to require franchisees to pay Royalty Fees and other amounts through methods other than ACH or automatic debit if they deem it appropriate. Franchisees must comply with any payment instructions provided by Deer Solution. This flexibility allows Deer Solution to adapt its payment collection methods as needed.
For a prospective Deer Solution franchisee, this means being prepared to provide banking information and sign the ACH Authorization Form well in advance of the business launch. It also means understanding that Deer Solution has the discretion to change payment methods, so franchisees should stay informed of any changes to payment procedures.